{"id":3716,"date":"2024-04-18T00:50:36","date_gmt":"2024-04-18T00:50:36","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/surprise-generation-dominating-property-investment-and-australias-hottest-markets-latest-residential-news\/"},"modified":"2024-04-18T00:50:36","modified_gmt":"2024-04-18T00:50:36","slug":"surprise-generation-dominating-property-investment-and-australias-hottest-markets-latest-residential-news","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/surprise-generation-dominating-property-investment-and-australias-hottest-markets-latest-residential-news\/","title":{"rendered":"Surprise generation dominating property investment, and Australia\u2019s hottest markets – latest residential news"},"content":{"rendered":"

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Backed financially and advised by their parents, Millennials have emerged as the most prominent demographic segment when it comes to property investment.<\/p>\n

Analysis released by CommBank on Wednesday (10 April) suggests the typical Australian investment property buyer is aged 43, gets a loan for just over half a million dollars<\/a>, has backing from the Bank of Mum and Dad and is buying in central or inner Sydney or Melbourne.<\/p>\n

Among all property investment purchases nationally, the top postcodes in 2023 were 2000 (Sydney CBD, including Haymarket<\/a>); 3029 (West Melbourne<\/a>, including Hoppers Crossing<\/a>); 2765 (North West Sydney, including Marsden Park<\/a>), 3064 (North Melbourne<\/a>, including Craigieburn<\/a>), and 2155 (North West Sydney, including Kellyville<\/a>).<\/p>\n

Over the past year, data from the Australian Bureau of Statistics found investors were the key driver of new lending, with lending growth to this segment reaching 18.5 per cent.<\/p>\n

Meanwhile, lending to first home buyers rose by 13.2 per cent, while owner-occupiers saw a 3.4 per cent increase in lending.<\/p>\n

Commonwealth Bank\u2019s Executive General Manager Home Buying, Dr Michael Baumann said many buyers were opting to rentvest.<\/p>\n

\u201cInterestingly, what we continue to see from many Aussies is the inclination to buy property where they can afford and then rent where they wish to live,\u201d Dr Baumann said.<\/p>\n

\u201cRentvesting gives Australians the chance to get their foot on the property ladder<\/a> sooner rather than later and purchase a property in a lower cost area without having to give up the lifestyle they have become accustomed to when renting.\u201d<\/p>\n

According to the CommBank data, 46 per cent of the bank\u2019s new property investors in 2023 were made up of millennials (born 1981 \u2013 1996), followed by Gen X (1965 \u2013 1980) who accounted for 37 per cent of all new investment property purchases throughout the calendar year.<\/p>\n

Only a third of all millennial property investors purchased their investment property on their own.<\/p>\n

The younger cohort of property buyers \u2013 Millennials and Gen Z (born 1997 \u2013 2012) \u2013 were also turning to their parents for financial advice as well as financial and mortgage security support.<\/p>\n

The No Place Like Home<\/em> report prepared by Great Southern Bank found Millennials and Gen Z overwhelmingly relied on family (43 per cent and 38 per cent respectively) and friends (31 per cent and 29 per cent) for financial advice during the past year.<\/p>\n

Fewer than one in five had consulted qualified professionals like a financial adviser, accountant, mortgage broker or bank in the past year.<\/p>\n

Great Southern Bank found it was around a third of young property buyers who needed parental financial support to buy their first home, which was about half that of young investment property buyers in the CommBank study.<\/p>\n

Almost all Millennials (96 per cent) feel they could have done things differently when it comes to their finances, including:<\/p>\n